Earnings Per Share

9 Months Ended

Sep. 30, 2019

The following table summarizes the Company’s computation of basic and diluted earnings per share (EPS) for the three and nine months ended September 30, 2019 and 2018 (amounts in thousands except per share information):



	Three Months Ended September 30, 2019						Nine Months Ended September 30, 2019
	Income (numerator)			Shares (denominator)	Per Share Amount		Income (numerator)			Shares (denominator)	Per Share Amount
Basic EPS:
Net income	$	34,003					$	165,946
Less: preferred dividend requirements	(6,034		)				(18,102		)
Net income available to common shareholders	$	27,969		77,632	$	0.36	$	147,844		76,169	$	1.94
Diluted EPS:
Net income available to common shareholders	$	27,969		77,632			$	147,844		76,169
Effect of dilutive securities:
Share options	—			32			—			38
Net income available to common shareholders	$	27,969		77,664	$	0.36	$	147,844		76,207	$	1.94



	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
	Income (numerator)			Shares (denominator)	Per Share Amount		Income (numerator)			Shares (denominator)	Per Share Amount
Basic EPS:
Net income	$	91,833					$	212,952
Less: preferred dividend requirements	(6,036		)				(18,108		)
Net income available to common shareholders	$	85,797		74,345	$	1.15	$	194,844		74,274	$	2.62
Diluted EPS:
Net income available to common shareholders	$	85,797		74,345			$	194,844		74,274
Effect of dilutive securities:
Share options	—			59			—			42
Net income available to common shareholders	$	85,797		74,404	$	1.15	$	194,844		74,316	$	2.62

The additional 2.2 million and 2.1 million common shares that would result from the conversion of the Company’s 5.75% Series C cumulative convertible preferred shares for the three and nine months ended September 30, 2019 and 2018, respectively, and the additional 1.6 million common shares that would result from the conversion of the Company’s 9.0% Series E cumulative convertible preferred shares for both the three and nine months ended September 30, 2019 and 2018 and the corresponding add-back of the preferred dividends declared on those shares are not included in the calculation of diluted earnings per share because the effect is anti-dilutive.

The dilutive effect of potential common shares from the exercise of share options is included in diluted earnings per share for the three and nine months ended September 30, 2019 and 2018. However, options to purchase 4 thousand common shares at per share prices ranging from $73.84 to $76.63 were outstanding for the three and nine months ended September 30, 2019 but were not included in the computation of diluted earnings per share because they were anti-dilutive. Options to purchase 4 thousand and 80 thousand common shares at per share prices ranging from $61.79 to $76.63 were outstanding for the three and nine months ended September 30, 2018, respectively, but were not included in the computation of diluted earnings per share because they were anti-dilutive.